As the price of Bitcoin is setting new records over the recent weeks, and institutional investors massively investing in the cryptocurrency, altcoins may surpass Bitcoin.
Will Bitcoin continue to grow?
The leading cryptocurrency by market capitalization fell sharply in March due to investor panic over the effects of Covid-19. The coin fell so much that this milestone went down in the history of the crypto industry.
This level allowed many investors to enter the market as prices soared from this price point, breaking many resistances and setting many records by the end of the year.
“Following the recent bullish technical breakout of its historical high, or ATH, the Bitcoin price has experienced an acceleration of the climb, quickly reaching theoretical targets explains”, explained Vincent Gunn, senior technical analyst at TradingView.
“So, after Bitcoin broke the old record of 2017, it reached new highs. What can we expect from the cryptocurrency now, and what levels should we watch for when the currency moves?
“When an asset breaks historical highs, there is no longer a simple benchmark for determining price targets. But in technical analysis, there are many tools for calculating theoretical goals, in particular the Fibonacci expansion coefficients associated with Elliott waves,” explains Vincent Gunn.
“My calculation from the point of the one-year low in March last year (the stock market shock from Covid) allows us to identify the bullish band at the end of the year as the fifth wave of growth,” he adds.
“Without going into technical details, we should remember that the target was $ 25,800 and it was met.”
“There is now a bearish divergence regarding Bitcoin dominance, which suggests a low performance of the BTC for the end of the exchange year,” says Vincent Gunn.
Thus, the technical analyst explains that a small “alternative season” may take place at the very end or beginning of 2021, and the growth of Bitcoin may stop. There may even be a rollback.
Whales accumulate more Bitcoins
Data show that wealthy investors have been buying more and more Bitcoins over the past four days.
Bitcoin blockchain trading activity has been volatile in recent days, and whales could be the cause. Large holders have helped deplete BTC stocks by aggressively buying up the crypto asset.
Over the past few months, the crypto industry has seen an increase in the number of well-known names, mostly from the financial industry, entering the Bitcoin market. This upswing doesn’t seem to be running out. The data points to an influx of wealthy investors into the market. However, one important point should be noted. Using these chains, it is difficult to distinguish individual from institutional investors.
Addresses over 1,000 BTC (which equates to $ 26.5 million at the current price of $ 26,500) are widely considered whales. Santiment Analysts have estimated that more than $ 645 million in Bitcoins have been moved to major addresses.
Channel data provider Santiment posted on Twitter: “In the last 48 hours since Christmas, Bitcoin addresses with 1,000 or more BTC now have 0.13% more supply than smaller addresses. This amounts to approximately 24,158 coins, or $ 647.7 million”.
Interestingly, many wealthy investors are holding on to their assets despite the current Bitcoin rally. According to the network, only a small number of whales have sold their assets.